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Volume 1, Issue 2

March 20, 2019

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Markets across Sub-Saharan Africa

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Economics & Policy

Political Update

Social & Lifestyle

Precinct

Financial &

Economic

Indicators Aviation

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ECONOMICS & POLICY

Africa’s looming debt crisis

Debt levels in African countries are rising at a worrying pace with debt to GDP reaching 45.9% in 2017,

according to the IMF. Unlike previous debt crisis where the IMF and the World Bank played a leading role,

this time the creditors are mostly commercial entities. These entities have little appetite for write offs or

restructurings. Africa’s looming debt crisis stems from the global financial crisis in 2008.

African economies, propelled by Asian demand for their

commodities, were expanding at record rates between

2007-2015. A few years earlier, many African government,

slashed fiscal and trade deficits and cut deals with the IMF

and World Bank to write off most of their debts under the

Heavily Indebted Poor Countries (HIPC) scheme. In many

African treasuries, the expectation was that the commodity

boom would continue. Unfortunately, their Asian

customers, who were beginning to feel the effect of the

global recession, started reducing commodity imports.

Determined to ramp up investment in infrastructure

needed to modernize their economies, African

governments sought new finance, especially in the

capital markets. With interest rates falling across

advanced economies, the timing was auspicious. A

number of African economies including Kenya, Nigeria

and Senegal, raised funds from the international capital

market in 2017/18. Angola, Benin Republic and Ivory

Coast, are considering issuances in 2019. Meanwhile,

China is now the largest single lender to Africa,

accounting for about 14% of the debt. It offers fast

access to big loans, often with long repayment schedules

and low interest.

Rush to capital markets

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The development of rapidly increasing debt, both foreign and domestic,

should be a cause for concern among African leaders and also in the

World Bank and IMF. But this is not always the case. The IMF has been

criticized for being slow to see the auguries. Mozambique defaulted in early

2017 after news of the government attempting to conceal $2bn of loans

from the IMF and other creditors. The country has still not agreed to a

restructuring deal with the bondholders. The bondholders believe that

Mozambique would be able to pay them in full when its gas fields start to generate revenue after 2020.

After Mozambique, the Fund scrutinized government finances more closely. For example, the IMF’s resident

representative in Maputo was transferred to Gabon, taking over as mission chief. In Gabon, he discovered an

additional $2.5bn of debt that was not on the government’s books. Similarly, in Equatorial Guinea the IMF

discovered that the government had not declared billions of dollars of domestic arrears.

The Zambian government is facing growing pressure to rein in spending and limit public debt, especially as

it heads towards a 2021 presidential election. The country’s debt to GDP ratio is forecast to reach 69% at the

end of 2019, while its external debt service to exports ratio is estimated at 76%. The IMF is refusing to offer

Zambia a bailout unless the government curbs borrowing. Its predicament may be a test case for many other

debt distressed economies. Zambia is running out of road. Like its debt-burdened peers, it faces harsh

choices. It can take the long and austere road to financial recovery or default on its obligations and be

blacklisted, i.e. cut off from the international markets.

From bailout to crisis

Zambia’s debt position is increasingly precarious

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THE “NEW” SCRAMBLE FOR AFRICA (Culled from The Economist)

The first great surge of foreign interest in Africa, dubbed the “scramble”, was when 19th-century European colonists carved up the continent and seized Africans’ land. The second was during the cold war, when East and West vied for the allegiance of newly independent African states; the Soviet Union backed Marxist tyrants while America propped up despots who claimed to believe in capitalism. A third surge, now under way, is more benign. Outsiders have noticed that the continent is important and becoming more so, not least because of its growing share of the global population (by 2025 the UN predicts that there will be more Africans than Chinese people). Governments and businesses from all around the world are rushing to strengthen diplomatic, strategic and commercial ties. If Africa handles the new scramble wisely, the main winners will be Africans themselves.

The extent of foreign engagement is unprecedented. From 2010 to 2016 more than 320 embassies were opened in Africa. Turkey alone opened 26. Last year, India announced it would open 18. Military ties are also deepening with America and France lending muscle and technology to the struggle against Jihadism in the Sahel. China is now the biggest arms seller to sub-Saharan Africa and has defense-technology ties with 45 countries. Oil-rich Arab states are building bases on the Horn of Africa and hiring African mercenaries.

Commercial ties are being upended. As recently as 2006, Africa’s 3 biggest trading partners were America, China and France. By 2018 it was China first, India second and America third (France was seventh). Over the same period Africa’s trade has more than trebled with Turkey and Indonesia, and more than quadrupled with Russia. Trade with the EU has grown by a more modest 41%. The biggest sources of foreign direct investment are still firms from America, Britain and France, but Chinese ones are catching up, and investors from India and Singapore are eager to join the fray. Nevertheless, Africans can do more to increase their share of the benefits.

First, voters and activists can insist on transparency. It is heartening that South Africa is investigating the allegedly crooked deals struck under the previous president, Jacob Zuma, but alarming that even worse behavior in the Democratic Republic of Congo has gone unprobed. Also the terms of Chinese loans to some dangerously indebted African governments are secret. To be sure that a public deal is good for ordinary folk as well as big men, voters have to know what is in it. Journalists, such as the Kenyans who exposed scandals over a Chinese railway project, have a big role to play.

Second, Africa’s leaders need to think more strategically. Africa may be nearly as populous as China, but it comprises 54 countries, not one. African governments could strike better deals if they showed more unity. No one expects a heterogeneous continent to be as integrated as Europe. But it can surely do better than letting China negotiate with each country individually, behind closed doors. Third, African leaders do not have to choose sides, as they did during the cold war. They can do business with anyone with something to offer. They have more choices now than ever before. If China builds a bridge in Ghana, an American car can drive over it. If a British firm invests in a mobile-data network in Kenya, a Kenyan entrepreneur can use it to set up a cross-border startup.

Last, Africans should take what some of their new friends tell them with a pinch of salt. China argues that democracy is a Western idea; development requires a firm hand. This message no doubt appeals to African strongmen, but it is bunk. A study by Takaaki Masaki of the World Bank and Nicolas van de Walle of Cornell University found that African countries grow faster if they are more democratic. The good news is that, as education improves and Africans move rapidly to the cities, they are growing more critical of their rulers, and less frightened to say so.

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Ghana is gaining popularity as the next big tourist destination

with its Year of Return campaign

Ghana has unveiled a 15-year-long tourism plan that seeks to increase the annual number of tourists to

Ghana from one million to eight million per year by 2027. The

country’s tourism industry is projected to raise $8.3 billion a year by

2027, plus associated benefits, according to the plan.

In recent months, celebrity guests including actor Idris Elba and

supermodel Naomi Campbell have attended events chaired by

Ghana's President Nana Akufo-Addo, the architect of the plan to

boost tourism by reaching out to its Diaspora. Guests took part in conferences, festivities and trips across the

country to discover its unique and sobering heritage under the auspices of the Year of Return campaign.

It is nearly 400 years since the first African slaves were taken from countries like Ghana to mainland

America, marking the start of the trans-Atlantic slave trade route. This timing is based on the first recorded

landing of a ship carrying Africans in Virginia in August 1619. To mark the landmark anniversary, President

Akufo-Addo declared 2019 as “The Year of Return”, launching a series of programs that would seek to

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encourage people of African ancestry to make the birthright journey home. The Year of Return includes a

music festival, an investment conference targeting Diaspora Ghanaians, and the Right to Return initiative,

encouraging African-Americans to seek citizenship in Ghana. The campaign highlights Ghana's tragic legacy

as a reason for Diaspora descendants to return and learn about this chapter of history.

Ghana, the first Sub-Saharan African country to win independence from colonial rule, has a history of

pursuing ties with Diaspora Africans. It dates back to the country's first President Kwame Nkrumah, whose

vision of Pan-Africanism included alliances with Diaspora communities.

Nkrumah enjoyed warm relations with African-American icons such as Muhammad Ali and Malcolm X, who

both travelled to Ghana to meet him. Writer Maya Angelou spent time in the country after its independence

and civil rights leader W.E.B. Du Bois is buried in Accra.

Ghana has also sought to incentivize Diaspora returnees through legislation such as the Right of Abode law

of 2000 that allows people of African descent to apply for the right to stay in the country indefinitely. It was

followed by the Joseph Project in 2007 that encouraged Africans in the Diaspora to return. Officials have

compared it to Israel's Law of Return that allows Jews to become citizens.

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Marginal dip in South Africa’s unemployment rate masks deeper

problems

South Africa’s unemployment rate dipped marginally to 27.1% in the fourth quarter of 2018 from 27.5% in

the previous quarter. However, year on year it was 0.4% higher than the corresponding period in 2017

(26.7%). South Africa’s misery index now stands at 37.1%.

The drop in the jobless rate between the third and fourth quarters is as a result of seasonalities. However, the

increase from the corresponding period in 2017 underlines weak job creation and subdued economic growth.

On an annual basis, the rate of employment growth increased by 2.2% to 16.53mn in 2018, comfortably in

excess of 2018 real GDP growth (estimated at 0.9%). This was driven mainly by a rise in the number of

informal jobs (by 6.9% to 3mn). Notwithstanding, formal

employment grew much more slowly (by 0.9% to 11.35mn).

Meanwhile, domestic service jobs increased by 4.9% to 1.3mn,

and farm jobs were flat at 0.85mn.

Financial services (including real estate) is the largest sector

of the economy, and major employer of labour, with a net job

gain of 238,000 in 2018 and an annual job growth of 10%.

Trade jobs grew by 2.5% to 3.32mn, while construction jobs rose by 6.5% to 1.48mn. Transport,

manufacturing and social/community services all posted small declines, to 0.97mn, 1.77mn and 3.62mn,

respectively.

Despite the reduction in South Africa’s unemployment rate, the broader picture is one of stagnation. The rate

at which new jobs are created is slower than the pace of increase in the labour force. The working-age

population grew by 1.6% in 2018 to 38.13mn, and the labour force climbed by 2.8% to 22.69mn, an increase of

617,000 from 2017. Of this number, 358,000 found jobs (58%), but 259,000 entered the ranks of the

unemployed. This lifted the total to 6.14m (27.1%) of the labour force.

Palace of the Lost City, South Africa

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What is going on with Ghana’s Currency?

In 2018, the cedi depreciated sharply against the US dollar as a result of both global and domestic market factors. The US-China trade war and US monetary policy tightening provoked a sell-off of emerging market currencies. On the domestic side, confidence in the financial sector was adversely affected by the collapse of seven banks.

The cedi has lost 9.59% so far in 2019, making it the fastest depreciating currency of the year, according to Bloomberg. The government and the central bank are of the opinion that the currency’s weakness is an anomaly and temporary. In order to reverse the situation, the Bank of Ghana (BoG) has put up a new Ghana Interbank Forex Market Conduct Derivatives plan, which delineates general rules on trading in the forex market. The plan outlines who is eligible to trade in forex in the country and how records should be kept and reported to the BoG.

The Minister of Finance announced expectations of foreign exchange inflow of $800million from Cocobod. This should boost foreign exchange liquidity. Meanwhile, the central bank has expressed its intention to pump about $800million into the economy to meet market demand. In addition, the country is in discussion with Standard Chartered Plc and Standard Bank group Ltd for a bridge loan facility of $750million, which it plans to pay back in the short-term through the proceeds from its Eurobond sale.

With a credit rating of B3 from Moody’s Investor Service and B from S & P Global rating, the Eurobond proceeds will be used to finance Ghana’s 2019 budget. The plan was to raise $2billion from foreign currency debt and an additional $1billion if it was able to secure lower rates from loans and securities making it a total of $3billion. The Eurobond sale on March 19 was oversubscribed by over 600%. The deal was raised in three tranches (7, 12 and 31 years). Yields on the bonds are priced at 7.875%p.a. for the 7-year tenor, 8.125%p.a. for the 12-year tenor and 8.95%p.a. for the 31year maturity.

In view of the upcoming general elections in 2020, the central bank’s accommodative monetary stance, benign inflationary environment and the pressure on the cedi are likely to persist in the foreseeable future.

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Ethiopia and Djibouti gas pipeline deal

Ethiopia and Djibouti have signed a deal

to build a 765km pipeline that will

transport gas from Africa’s second most

populous country, to an export terminal

in the Red Sea at Djibouti. African

nations are increasingly forming alliances

on infrastructural development, which

will boost their economy in terms of trade

and development.

Ethiopia will have 700km of the pipeline installed in

its territory, while the remaining 65km will be within

Djibouti territory. The pipeline is expected to

transport up to 12million cubic meters of gas from

the Ethiopian hinterland to the coast of neighbouring

Djibouti, where it will build a 3 Metric tonnes per

annum (mtpa) liquefied natural gas (LNG) plant and

export terminal.

The deal comes years after Ethiopia found extensive

gas deposits in Ogaden Basin. The pipeline is the

most expensive project in the Horn of Africa with a

cost of $4billion and construction will take three

years to be completed.

The country awarded the production of Calub gas to the

Chinese company Poly -GCL Petroleum Ltd, where the

company has been developing the Calub and Hilala fields

since signing a production sharing deal with Ethiopia in

2013. The country will sell its gas resource from Calub and

Hilala

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Rwanda – Frontrunner in Africa’s ICT drive

Rwanda is set to be the first African economy to produce mobile phones.

This will complement the launch of its Icyerekezo satellite, bridging the

digital infrastructure gap in the economy as well as driving innovation.

Mara Corporation, a Pan-African telecommunications company, will

manufacture Africa’s first locally produced smart phone. Africa will have Maraphone, the same way China

has Huawei and the US has the iPhone. The company will establish manufacturing plants in Rwanda and

South Africa with African Development Bank (AfDB) providing financial support.

ICT development is at the core of Rwanda’s Vision 2020 plan, thus, the project will help enhance financial

inclusion, education, exports, job creation, micro-lending and micro-insurance. The project is expected to

initially provide close to 20,000 jobs in the economy and eventually

create more jobs in subsequent years thereby enhancing human capital

development.

Mara X will be the first locally manufactured phone across Africa and

will be launched in partnership with Google. The phone will be among

the first devices to run on the latest Android 8.0 Oreo operating

system. Upon commencement in April 2019, first time Smartphone users will be the target market and will

pay in instalments over a period of 24 months. In a bid to enhance access to ICT, digital services and reduce

cost of internet services the company will have to work closely with telecommunication companies.

This is an opportunity for Africa to leverage on. In 2018, average value of mobile money per day increased by

30% to $1.3billion in 2018 from $1billion in 2017.

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Ebola crisis worsens in DRC

The Ebola outbreak in the war-torn North Kivu and Ituri regions in

the Democratic Republic of Congo (DRC) continues to escalate,

despite the arrival of hundreds of emergency aid workers and a

new vaccine to contain its spread.

As of March 15th, the number of reported Ebola cases stood at

819, with 569 deaths since August 2018. This makes it the largest

outbreak since the 2014 epidemic that swept across West Africa.

According to the Ministry of Health, up to 77,000 people have

been inoculated. However, the disease is still spreading and

threatens to reach Goma, a regional capital, which

borders neighbouring Rwanda. No cases have been confirmed

there so far, but contamination within the city would be an

alarming development.

Several factors are thwarting the treatment of patients and

affiliated prevention efforts. One is the pervasive conspiracy

theory among the local population that the government or

humanitarian organisations invented the disease to scare people,

or stop them from voting. The elections that took place across the

country in December have yet to take place in North Kivu (they

were postponed amid fears of the potential knock-on effects on

the disease.)

Another issue is that, given their chequered history protecting

local populations, armed UN peacekeepers and government

soldiers who accompany health workers are viewed with suspicion

in rural areas that are plagued by instability. As a result, potential

incubators of the disease have avoided screening and vaccination

processes, reducing their effectiveness in areas where they are

most needed.

4,809

2,543

Deaths related to Ebola

outbreak since 2014

LIBERIA

LIBERIA SIERRA LEONE

GUINEA

569

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DRC

NIGERIA

Source: World Health Organisation

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AFRIWORD E E R R B S O G N I M A L F Z

Z U A I I G C W Z F I R I R E

E Q U C S W G J A P E E U O Q

S I L E S T Z K N R N T N R E

Y B E C A O L A Z A N V W A L

C M S J U M W M I B E I E J L

H A W P V V U P B U J W E N I

E Z A Z I L A A A J D S Y A V

L O H L U T Y L R J H B I M R

L M I Z A P Z A H E A T R L E

E H L U V G U K B A A J Q I B

S Y I K E I N E O P Z B G K I

I G Q K F S L I A P R U B U L

H A V Q N L M H L A P A T A M

R O B B E N C K W W K E R Q Z

Shebelle

Djenne

Kampala

Rice

Lingala

Robben

Liberville

Mozambique

Juba

Swahili

Kilmanjaro

Sychelles

Bissau

Spitzkoppe

Flamingos

Zulu

Matapa

Zanzibar

Firire

Chapati

Lake Retba, Senegal

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MARKETS ACROSS SUB-SAHARAN AFRICA

(February to date)

GHANA

HAPPY INDEPENDENCE DAY (March 6th)

Ghana Stock Exchange

The Ghana Stock Exchange Composite Index has lost 4.97% YTD to close at 2,460.73 on March 19. The

exchange had 12 positive and 18 negative days. Vodafone Ghana confirmed plans not to list on the stock

exchange but the Ghana Stock Exchange is insistent on the company listing. The exchange currently has 41

companies listed on the exchange after Pioneer Kitchenware was delisted. The company is the 5th to be

delisted from the exchange in the last 19months.

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1 Ghana Stock Exchange

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Ghana Stock Exchange

GSE CI

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Forex Market

The Ghana cedi depreciated by 9.59% against the US dollar to close at

GHS5.42/$ on March 19 from GHS4.90/$ on January 02. The currency

depreciation is due to negative sentiment towards emerging markets and could

therefore be temporary. However, further depreciation against the US dollar is expected due to the prospect

of higher US interest rates, rising inflation and low confidence in the financial sector.

Money Market:

Primary Market Treasury Bills Rates2

Ghana 18 Mar (p.a.) 11 Mar (p.a.) %Change

91-day 14.19% 14.19% - 182-day 14.08% 14.08% - 364 day 15.39% - +15.39bps

UGANDA

Uganda Stock Exchange

The ASI gained 8.58% YTD to close at 1,773.17 on March 19. The exchange had 11 positive and 20 negative

days in the review period. The government has demanded that MTN list on its exchange and has deported

four (4) of the company’s executives in under a month on security basis.

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2 Bank of Ghana

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Uganda Securities Exchange

USE ASI

Quick facts

Unemployment rate (2017)

2.40%

GDP (2017) $47.33bn Inflation rate 9%

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Gold has overtaken Coffee to become Uganda’s biggest export product. Uganda is Africa’s biggest exporter of Coffee.

Forex Market

The Uganda shilling depreciated against the US dollar by 0.38% from

Ush3700.67/$ on January 02 to close at USh3714.83/$ on March 19. This was on the

back of increased demand for the dollar by commercial banks seeking to increase

their positions in order to pay dividends. Demand for the US dollar is expected to

pick up, leading to a weaker shilling.

Money Market: Primary Market Treasury Bill Annualized Yield4

Uganda 13 Feb (p.a.) 30 Jan (p.a.) %Change

91-day 9.85 10.75 -0.90bps 182-day 11.30 12.04 -0.74bps 364 day 11.52 12.50 -0.98bps

Flash Note

The Republic of Benin is preparing for its first entry

into the foreign bond markets through the issuance

of Eurobonds. The country has a B+ rating from S &

P 500.

Nigeria is currently Benin’s largest trade partner. The

proceeds of the Eurobonds would be used to finance

infrastructural development and bridge its fiscal deficit, which is expected to narrow from 4.2% of

GDP in 2018 to 3% of GDP in 2019. Investor and business confidence would therefore be

strengthened. The country recorded a deflation rate of 0.20% as at December 2018 and Gross

Domestic Product annual growth rate of 6.80% (Q3 2018).

3 Uganda Stock Exchange 4 Bank of Uganda

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POLITICAL UPDATE

Senegal’s Macky Sall wins outright majority in presidential

election

Senegal’s President Macky Sall won a decisive majority in

elections after overseeing years of high economic growth and the

construction of modern infrastructure. The president won 58

percent of the votes, well above the 50 percent needed to avoid a

second round, according to results announced by the National

Vote Counting Commission on February 28.

As expected, President Sall retained significant support in Dakar, the capital, while he also had a lead in

other major cities, the exception being Thiès (Senegal's third-largest city). Overall, Macky Sall was in a

stronger position to win re-election in the first round, as it was likely that rural areas, where his government

has substantially improved services and infrastructure, would support his re-election bid.

The four opposition candidates who faced Sall dispute the results but would not challenge them before the

council, according to a joint statement. Senegal is the only West African nation that has never had a coup,

while elections usually experience little to no violence. His two main opponents, former Prime Minister Idrissa

Seck and Ousmane Sonko, a former tax inspector, won 20.5 percent and 16 percent of votes respectively,

according to the commission.

The outcome provides Sall with a strong mandate to continue with the

business-friendly policies that have made Senegal one of the fastest-

growing economies in Africa. The high participation rate (66.23%) and

the decisive nature of the victory will provide the president both the

Quick Facts Nominal GDP (2017) $16.37bn

GDP growth (Q3’18) 4.9%

Inflation (January) 0.6%

External Reserves $2.01bn

Unemployment rate 7.5%

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legitimacy and the opportunity to continue pushing forward his ambitious infrastructure plans, pro-market

reforms and liberal agenda. During his next term, he will also face the challenges of restoring trust in the

judiciary, addressing high youth unemployment and combating growing insecurity in the region.

Burkina Faso honors Thomas Sankara’s legacy with a bronze

statue

More than three decades after his assassination, Burkina Faso celebrated renowned Pan-Africanist, Thomas

Sankara with a new monument. The new statue, which was unveiled on March 2nd in the capital city,

Ouagadougou, formalizes his place in a new political

era.

Sankara is memorialized alongside 12 of his comrades,

who were also assassinated in the 1987 coup. The statue

was designed by sculptors of Burkinabe origin, who

answered a public call to artists and architects. The

project was led by renowned artist, Jean-Luc Bambara. The statue will form part of a mausoleum, museum,

gallery and conference space, all of which are the result of a national effort to revive the legacy of Thomas

Sankara. The cost of the statue is yet to be revealed.

Before his death, Sankara used his brief presidency to institute bold

reforms, renamed the country, composed a new national anthem

and implemented policies of economic self-reliance that are still

popular today. Sankara also promoted policies that empowered

women and was a big advocate of gender equality.

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All of this, along with his austere lifestyle and rejection of neo-colonialism made him the ideal symbol for the

2014 uprising that ousted Blaise Compaore after 27 years in power. Now in exile in the Ivory Coast, Compaore

is wanted in Burkina Faso to answer questions for his role in the death of Thomas Sankara. With Compaore

gone, Sankara’s ideas and imagery have again become a popular movement in Burkina Faso.

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The National Basketball Association’s (NBA) first professional basketball league outside of

North America, the Basketball Africa League is set to begin in Africa in January 2020. Most

African countries have a common national sport (usually football) however, in the last few

years there has been a growing interest in other sport. Basketball is one that has stood out

amongst these newcomers. The National Basketball Association, the world’s biggest and

most popular basketball league has grown an interest in Africa’s growing love for basketball,

recognizing the continent’s potential to be a prominent destination for the sport.

SOCIAL & LIFESTYLE PRECINCT NBA to co-launch professional basketball league in Africa

Many professional players of African descent including hall of

famers Hakeem Olajuwon of Nigeria and one-time finalist

Dikembe Mutombo of the Democratic Republic of Congo have

been involved in the NBA’s African outreach. Current players

such as Senegal’s Gorgui Dieng, Cameroon’s Joel Embiid, DRC’s

Bismack Biyombo, and South Sudan’s Luol Deng have also had a

hand in building the NBA’s African brand at grassroots level.

The NBA plans to conduct qualification tournaments later this

year to identify the 12 teams that would represent several African countries, including Angola, Egypt, Kenya,

Morocco, Nigeria, Rwanda, Senegal, South Africa and Tunisia. No more than two teams from the same

country will play in the league.

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Kenyan engineer invents glove that translates sign language to

speech

Roy Allela, a 25 year old Kenyan has created gloves that translate sign

language to speech. Roy, a microprocessor engineer invented the smart gloves

out of the need to communicate with his 6-year old niece who is hard of

hearing. The gloves are referred to as Sign-IO.

The smart glove technology addresses the language barrier between sign

language users and those who are not conversant with sign

language. It supports and provides a solution towards enhanced engagement and inclusion of people with

disabilities. Sign-IO has flex sensors, which when placed on each finger, have the capacity to quantify the

bend of a finger and process the letter being signed. The gloves are connected through a mobile application,

which Roy developed and through the use of Bluetooth, it converts the sign into audio speech. The speed at

which the signs are vocalized is a very important aspect of the gloves as it determines the rate at which the

speech will come out. Through the app, users are able to set the language, gender and pitch of the audio

voice, with accuracy results averaging 93%.

Roy’s gloves recently won the Hardware Trailblazer award from the

American Society of Mechanical Engineers (ASME) during its 2017

ASME Innovation Showcase (ISHOW) competition. The price money

will be used to make more accurate vocal predictions. Roy Allela is

working towards commercializing his innovation through the support

of Kenya, under a programme for nurturing innovators and

commercialization of innovations.

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Questions over security Security is expected to be tight for the 2019 festival with Burkina Faso increasingly targeted by jihadist groups

who are waging an insurgency across the Sahel region. A number of attacks have taken place in the north of

the country and the capital Ouagadougou has been targeted three times in the past three years.

Africa’s biggest film festival celebrates golden jubilee

Africa’s largest film festival, FESPACO, celebrates its 50th birthday on

March 9th with the biennial event kicking off with an opening ceremony

in Burkina Faso’s capital city, Ouagadougou. About 160 films from across

the continent are set to be screened over a week with 20 movies competing

for the prestigious l’Étalon d’or de Yennenga prize. Fespaco, the acronym

for the Pan-African Film and Television Festival of Ouagadougou in

French, was launched in 1969 and is similar in structure to the Cannes

Film Festival with several official selections including short documentaries, animations and full-length

feature films.

The festival is an opportunity for African filmmakers to promote their work and aims to contribute towards

the expansion and development of African cinema in Europe, North America and beyond. Films from 16

African countries are vying for the so-called African Oscar, the Golden Stallion of Yennenga. The prize was

named after the story of a 12th century princess who is considered the mother of the Mossi people in central

Burkina Faso.

Finalists this year include Rafiki, a Kenyan film about the love and friendship between two young women,

Ghanaian movie Keteke, which tells the story of a couple desperate to have their baby born in their home

town and Miraculous Weapons, a Cameroonian film about a man on death row in South Africa.

Approximately 4,500 members of the film industry are expected in the Burkinabe capital, while 100,000

members of the public are expected for 450 screenings, scheduled to take place in venues across

Ouagadougou.

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AVIATION SECTION Ethiopian Airlines flight crashes near capital, killing all on board

On March 10th, a Boeing 737 MAX 8 operated by Ethiopian Airlines crashed into a field 60 km south of the

Ethiopian capital, Addis Ababa, shortly after take-off. All 157 people on board were killed. The victims of the

crash were from 35 countries, including 32 Kenyan citizens, 18 from Canada and 8 nationals from China.

Several passengers on board were en route to a UN environment conference in Nairobi; 19 officials and

representatives from the UN were killed.

The cause of the crash is still unknown, and the investigation is ongoing. Ethiopian Airlines has suspended

its use of Boeing 737 MAX 8 planes, in view of the

same model (operated by Lion Air of Indonesia)

having crashed in October 2018, killing all 189 people

on board. Several other international airlines have also

suspended the use of the Boeing 737 Max 8, citing

concerns about safety. Currently, Ethiopian Airlines

has four Boeing 737 MAX 8 aircraft in service, and six are scheduled to be delivered in the near term.

The airline is the national carrier and is one of the fastest-growing commercial carriers in the world and the

largest in Africa. In the past two decades Ethiopian Airlines’ fleet has grown from a dozen planes to more

than a hundred, turning the capital city into an aviation hub that connects Africa to Asia and North

America.

30

Ethiopian Airlines has also connected the continent. Until recently, a passenger wanting to fly to from West

to East Africa would have to use a European carrier and pass through a major airport such as Frankfurt,

London or Paris. Ethiopian Airlines has linked African destinations with stopovers in Addis Ababa, cutting

costs and flight times and serving a growing African market.

The national carrier is one of the major state-controlled assets due to be privatized as part of the

government's efforts to open up the economy and stimulate private-sector investment. The move is also aimed

at alleviating a shortage of foreign currency. The government plans to sell a minority stake in the airline, and

the offering is expected to materialize by end-2019. Regardless of the crash and the wide international media

coverage, the accident is not expected to affect or delay the government's privatization plan. This is because

the airline is profitable and has a consistently good safety record over the past decade. The airline reported a

net profit of $214m in 2016/17.

South African Airways increases connectivity to West Africa

South African Airways (SAA) has enhanced connectivity to West Africa following the successful completion of

a Memorandum of Understanding (MoU) with Africa World Airlines (AWA), the airline’s Ghanaian

partners. The MoU allows the two airlines to enhance their relationship through synergies that include code

sharing, franchising and any other related projects.

SAA customers will fly from Accra on SAA-operated flights and then connect to further destinations on

flights operated by Africa World Airlines. SAA and Africa World Airlines formed a relationship in 2015,

which resulted in the commencement of the Accra-Washington Dulles flights. SAA operates daily flights

between Johannesburg and Accra, with four of the flights continuing onwards to Washington, and the other

three flights continue onwards to Abidjan, Ivory Coast.

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SAA’s relationship with AWA has since grown from the original commercial co-operation into the new

interline commercial agreement, which became possible when SAA finalized technology integration with

AWA in November. With effect from April, SAA would increase the frequency from Accra to Washington to

five flights per week.

Ethiopia Airlines launches direct flights from Manchester to

Addis Ababa

If you live in the north of the United Kingdom and want to travel to Africa, Ethiopian Airlines now fly direct

from Manchester to Addis Ababa four times a week, using the Boeing 787 Dreamliner. This offers greater

connectivity with other UK airports in conjunction with U.K. budget airline FlyBe. Passengers can

subsequently access Ethiopian’s 61 African destinations from Addis Ababa.

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Country GDP Growth rate (%) Inflation rate (%) Interest Rate (%p.a.) Exchange Rate ($) Current 2019f Current Trend Current Per $

Angola (1.60) Q3’18 3.10 17.96 Feb Downwards 15.75 316.45 Botswana 4.20 Q3’18 3.60 3.30 Feb Downwards 5.00 10.73 Cameroon 4.60 Q3’18 4.40 2.10 Nov Upwards 3.50 593.64 DRC 3.70 Q4‘17 4.10 9.05 Dec Downwards 14.00 593.64 Ethiopia 7.70 Q4‘17 8.50 10.90 Feb Constant 7.00 28.60 Gabon 0.30 Q4‘17 3.40 5.80 Jan Downwards 3.50 593.64 Ghana 7.40 Q3’18 7.60 9.20 Feb Downwards 16.00 5.42 Guinea 5.80 Q4‘18 5.90 9.70 Jan Downwards 12.50 9,227.74 Ivory Coast 7.70 Q3’18 7.00 2.10 Jan Upwards 4.50 577.62 Kenya 6.00 Q3’18 6.10 4.14 Feb Downwards 9.00 100.28 Liberia 2.50 Q4‘17 4.50 28.50 Dec Upwards 12.40 162.51 Mozambique 3.10 Q4’18 4.00 3.72 Feb Downwards

14.25 62.60 Nigeria 2.38 Q4’18 2.00 11.31 Feb Downwards 14.00 359.38 Rwanda 9.60 Q4’18 7.80 -0.40 Feb Downwards 5.50 903.27 Senegal 3.90 Q3’18 6.70 -0.10 Feb Downwards 4.50 577.62 South Africa 1.10 Q4’18 1.40 4.10 Feb Upwards 6.75 14.51 Tanzania 6.80 Q3‘18 6.60 3.00 Feb Constant 7.00 2,342.38 Uganda 6.80 Q3’18 6.10 3.00 Feb Upwards 10.00 3,714.83 Zambia 4.10 Q4’17 4.50 7.80 Feb Downwards 9.75 12.00 Zimbabwe 2.90 Q4‘17 4.20 59.39 Feb Upwards 9.48 N/A

STOCK EXCHANGE Mar 19

Mar 15 % Weekly Change YTD %

Dar es Salaam Stock Exchange 2,060.76 2,057.05

0.18 1.39 Ghana Stock Exchange CI 2,460.73 2,454.34

0.26 4.97 Johannesburg Stock Exchange 56,849.67 56,040.21 1.44 10.9

0

Nairobi Stock Exchange 158.93 158.07 0.54 13.36 Nigerian Stock Exchange 31,082.32 31,142.72 0.19 0.04 Uganda Securities Exchange 1,773.17 1,766.35 0.39 8.58 Zimbabwe Stock Exchange 129.72 133.72 2.99 10.15

AGRICULTURE

Mar 19 ($)

% Weekly Change YTD %

Cocoa 2,202.00 0.23 8.02 Wheat 456.50 1.24 9.92 Corn 371.25 0.54 1.20 Sugar 12.78 2.08 7.12 ENERGY Brent 67.49 0.49 22.91 WTI 59.03 0.87 26.84 LNG 2.87 3.24 3.04

Gold 1,306.50 0.28 1.74 Copper 292.30 0.58 11.44 Silver 15.37 0.33 1.79

METALS

Mar 15($)

2,197.00 462.25 373.25 12.52

67.16 58.52 2.78

1,302.90 290.60 15.32

FINANCIAL AND ECONOMIC INDICATORS5

5 Trading economics, IMF, Bloomberg, African-markets

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